Champion Iron Ltd. · ASX:CIA
Champion Iron — Corporate Update (September 2024)
60 slides from Champion Iron's corporate update, Sep 23, 2024
Slide 1: A Rare Solution to Decarbonize Steelmaking
CHAMPFIU (=s pIne oO--~~ ie we 4 ceety = E ee {owe < 7 SES A RARE SOLUTION TO DECARBONIZE STEELMAKING om, ae CHAMPION IRON 24
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 2s "his presratn ie Present cotasnornatonsbad ChanponronLied Champa’ or he ‘Company curerasatiedalherefor ar at sicher dateas na Erepettad ern he resertaonoes otcorsthiteor orp andstouratbeconstuadas anor tselorwsiar thsoicatinofanoer Biya mire seo Chaopurr ano! tsiteidrescr
Slide 3: Attending Executives
ATTENDING EXECUTIVES CHAMPION IRON 2s MICHAEL O‘KEEFFE DAVID CATAFORD ALEXANDRE BELLEAU DONALD TREMBLAY Executive Chairman Chief Executive Officer Chief Operating Officer Chief Financial Officer : STEVE BOUCRATIE MICHAEL MARCOTTE ANGELA KOUROUKLIS FRANCOIS LAVOIE Seri Vice-President Si Vice-Presiden
Slide 4: Agenda
AGENDA CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF TOPIC TIME PRESENTERS Qhtroduction and sustainability 15 mi Michael Marcotte qapmmitment ™ David Cataford thy Ud) Market dynamics 15min David Cataford © Ceperational and financial Ceprformance 15min David Cataford Nn qurewth opportunities 15m
Slide 5: Champion Iron
CHAMPION IRON 2M TSX: CIA | ASX: CIA | OTCOX: CIAFF
Slide 6: Introduction: Vision
INTRODUCTION CHAMPION IRON 2s > VISION omniiiotids on Leverage the force ar TrBSpOnsible’ materials to decarbonize and = brighten the ‘future:
Slide 7: Introduction: Mission
INTRODUCTION CHAMPION IRON 2s | MISSION ; Produce responsible materials | with ingenuity to reduce the carbon | footprint with and for those who + seek change.
Slide 8: Upholding Values for a Sustainable Future
CHAMPION IRON 2 INTR ODUCTI ON TSX: CIA | ASX: CIA | OTCQX: CIAFF > “-UPHOLDING VALUES FOR A SUSTAINABLE FUTURE @ : i —_, q e — Oo PRIDE INGENUITY RESPECT TRANSPARENCY LL Develop a collective sense Leverage employee creativity Respect for people, resources, the Promote transparent of belonging in al
Slide 9: Sustainability Commitment
SUSTAINABILITY COMMITMENT CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF
Slide 10: 2023 Sustainability Highlights
2023 SUSTAINABILITY HIGHLIGHTS CHAMPION IRON 2s 2023 ES! => c fo) © 7) =) © c fe) 2) — o om — fo) LL
Slide 11: Committed to Reduce Carbon Emissions
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s COMMITTED TO REDUCE CARBON EMISSIONS Substantial investments completed since Bloom Lake’s recommissioning in 2018, enabling the Company to reduce fo) average annual CO, emissions by more than 30%, compared to the previous owner ro Committing to mine-site gr
Slide 12: Canadian Iron Ore Produced with One of the Lowest Carbon Intensities
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s CANADIAN IRON ORE IS PRODUCED WITH ONE OF THE LOWEST CARBON INTENSITY GLOBALLY Cc P 7 oO H EMISSION INTENSITY PER TONNE Lx OF IRON ORE PRODUCED @ 0 | H Benefiting from access to D0 4 3 . > in | i hydroelectric power, 55.6% of all as i . Om") energy consumed
Slide 13: Market Dynamics
CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX: CIAFF
Slide 14: The Steel Industry Needs to Evolve to Limit Emissions
CHAMPION IRON 2 MAR KET DYNAMICS TSX: CIA | ASX: CIA | OTCQX: CIAFF THE STEEL INDUSTRY NEEDS TO EVOLVE TO LIMIT EMISSIONS — Steel ¢g 5 * Mining Freight 1% 2% CG Steelmaking increased its Agriculture, forestry and Aaglomeration () _ share of global emissions ee ° inthe last 20 years, now Waste — repr
Slide 15: Steelmaking Methods and Required Supply Chain
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF STEELMAKING METHODS AND REQUIRED SUPPLY CHAIN PROCESS ec METHOD INPUTS o) ZA\ ae (aD) BF-BOF Lower grades pgs PA aa -2.2t CO,e/t Iron ore concentrate* emissions = Coke DRI-EAF “ZA Direct Reduced Iron DR Feed lectric Arc Furnace ot 3
Slide 16: Market Leading High-Purity DR Quality Product
MARKET DYNAMICS CHAMPION IRON 2s MARKET LEADING HIGH-PURITY DR QUALITY PRODUCT IN A GROWING MARKET Cc SUMMARY OF IRON AND GANGUE CONTENTS rab) Primarily Australia ww Primarily Brazil, Canada, © (wy) « a Ukraine and Russia 2) r : 1 J Sz fs oc 2 10% + oa 8% BF QUALITY Ce .o) Qi 6% 7p) 5 ay TRANSITION
Slide 17: Long-Term Iron Ore Consensus Prices Below Historical Averages
CHAMPION IRON 29 MARKET DYNAMICS TSX: CIA | ASX: CIA | OTCQX: CIAFF LONG-TERM IRON ORE CONSENSUS PRICES SIGNIFICANTLY BELOW HISTORICAL AVERAGES ©@ The P62 and P65 index consensus prices are 13.9% and 9.8% below historical average prices, while DR pellet (e) premiums are expected to rise from histori
Slide 18: Iron Ore Prices Supported by Rising Industry Costs
MARKET DYNAMICS CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF {RON ORE PRICES SUPPORTED BY RISING INDUSTRY COSTS Impacted by weaker steel output in China and seasonally elevated iron ore supply from major hubs, iron ore prices recently tested multi-year lows Overall industry operating costs sub
Slide 19: DRI Production Increasing Despite Lack of Steel Growth
MARKET DYNAMICS CHAMPION IRON 2s ORI PRODUCTION INCREASING DESPITE A LACK OF GROWTH IN THE STEEL SECTOR MONTHLY GLOBAL CRUDE STEEL AND DRI PRODUCTION Supported by several governments, the (k tonnes) accelerating industry transition from BF-BOF to DRI-EAF, resulted in increased DRI 2s0 production des
Slide 20: Governments Supporting the Green Steel Transition
MARKET DYNAMICS CHAMPION IRON 2s GOVERNMENTS SUPPORTING THE GREEN STEEL TRANSITION On. rsonal use on a At COP28, several countries including Canada, Germany, UK and US, pledged to procure green steel for public infrastructure construction, which is responsible for 25% of global construction revenue
Slide 21: For personal use only
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Slide 22: Operational and Financial Performance
> -OPERATIONAL AND FINANCIAL CHAMPION IRON-Z4 aPERFORMANCE En SHR
Slide 23: World Class Infrastructure
WORLD CLASS INFRASTRUCTURE CHAMPION IRON 2s RE SOLUTION FOR THE GREEN STEEL SUPPLY CHAIN IN A PROVEN OPERATING HUB AND NEAR “@VAILABLE INFRASTRUCTURE MINING HUB ENERGY {Mining hub perduring since 1960s Renewable energy and power Proximity to rail with available Deepwater port of Sept-lles with prove
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Slide 25: Bloom Lake Site Overview: 2018 Recommissioning
BLOOM LAKE SITE OVERVIEW: 2018 RECOMMISSIONING CHAMPION IRON 2s SRIOR TO ITS RECOMMISSIONING BY CHAMPION IN 2018, BLOOM LAKE BENEFITED FROM OVER ttS$3.6B IN INVESTMENTS BY THE MINE'S PREVIOUS OWNERS 2018 RECOMMISSIONING! Renegotiated rail contract and access to new berth oS ‘ Completed tailings pump
Slide 26: Bloom Lake Site Overview: Today
BLOOM LAKE SITE OVERVIEW: TODAY CHAMPION IRON 2s gb00Mm LAKE NOW BENEFITS FROM OVER US$4.5B INVESTED, INCLUDING THE COMPLETED PHASE || PROJECT 2018 TO TODAY! Nameplate capacity: 15.0M tpa - - DRPF project under construction 2" ore silo New mining operations office SS... a bis ae => New garage recent
Slide 27: Bloom Lake Mine: A Long-Life Asset with a Proven Flowsheet
CHAMPION IRON 29 MINING VOLUME INCREASE TSX: CIA | ASX: CIA | OTCQX: CIAFF 8LO0M LAKE MINE: A LONG-LIFE ASSET WITH A PROVEN FLOWSHEET cS SIMPLIFIED FLOWSHEET FINAL PIT AND WASTE DUMPS CURRENT DESIGNS O 3 PITS <<. \ oA A, Y BLOOM WEST PIGNAC MINE CHIEF’S PEAK SEPARATION SEPARATION Cc Spusnine GRAVITY
Slide 28: Solidifying Operations
CHAMPION IRON 29 SOLIDIFYING OPERATIONS TSX: CIA | ASX: CIA | OTCQX: CIAFF DS vinnval production of 14.2M wmt in FY2024, an BLOOM LAKE PRODUCTION HISTORY increase of 26.6% year-over-year, representing (MILLION WMT/YEAR) 94.4% of Bloom Lake’s expanded nameplate capacity of 15M tpa nal use onl Note: Q
Slide 29: For personal use only
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Slide 30: FY2024: Proven Cost Structure
FY2024: PROVEN COST STRUCTURE CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF > FY2024 results: Total cash cost! of $75.9/t, positively impacted by higher mill production with the completion of the in inventory valuation For personal use on $73.9 FY23 Higher mill Mine - Explosives Site productio
Slide 31: FY2024: Financial Results
FY2024: FINANCIAL RESULTS CHAMPION IRON 2s => Improved financial results year-on-year, positively impacted by higher sales volume, partially offset by higher net finance costs and higher current income and mining taxes For the year ended March 31, 2024, revenues totaled $1,524.3M (+9.3% YoY), net ca
Slide 32: Robust Balance Sheet and Liquidity Position
ROBUST BALANCE SHEET AND LIQUIDITY POSITION CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Ss or) > BALANCE SHEET $294.7M Cash and cash equivalents® $267.4M Working capital! ? oe $543.7M Short-term & Long-term debt? Total cash and cash equivalents®, working capital and o) undrawn credit facil
Slide 33: Growth Opportunities
y GROWTH OPPORTUNITIES CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF onal use onl
Slide 34: Green Steel Supply Chain Solutions
CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF GREEN STEEL SUPPLY CHAIN SOLUTIONS QE-RISKING A VAST PROJECT PORTFOLIO REQUIRED FOR THE GREEN STEEL SUPPLY CHAIN MINING VOLUME INCREASE PRODUCTS OPTIMIZATION KAMI STUDY COMPLETED 9M TPA PROJECT Evaluating strategic partnerships and opportunities to
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Slide 37: DRPF Project Update
CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF DRPF PROJECT UPDATE DRPF PROJECT TOTAL EXPECTED CAPEX' > As at June 30, 2024, cumulative investments of $153.8M from L | “E estimated total capital expenditures of $470.7M!, with the AS OF JUNE 307, 2024 ($M) © Project remaining on budget and on sc
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Slide 39: Kami Project
KAMI PROJECT CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF LY ICD NHNWAYL tort tS BLOOM LAKE 023812 fat davat ata tT Sth tae VT OOo TTee fave Wt kilometers Mont Wright Mine 0238511 Source: Champion Iron Limited KAMI PROJECT Sizeable high-purity iron resource, significantly de-risked by the Proj
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⎪ ⎪ For personal use only Tailings Management Facility
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Slide 42: Kami Project
KAMI PROJECT CHAMPION IRON 2s > Kami Project’s expected capital intensity of US$331/wmt of production capacity is competitive with recently ec completed high-grade concentrate greenfield projects’ capital intensity average of US$328/wmt! © Recently completed project's capital intensity implies a rep
Slide 43: For personal use only
⎪ ⎪ For personal use only → → See with Vincent for 5 yr perspective →
Slide 44: Financial Year 2025 Focus
FINANCIAL YEAR 2025 FOCUS CHAMPION IRON 2a TSX: CIA | ASX: CIA | OTCQX: CIAFF Ongoing sustainable environmental management and priority on the health and safety of our employees, partners and communities Optimize operations at Bloom Lake, including the ongoing evaluation to debottleneck operations t
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Slide 46: Contact us for more information
CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF Contact us for more information Michael Marcotte, Senior Vice-President Corporate Development and Capital Markets info(@@championiron.com | 514-316-4858 1155 René-Lévesque West, Suite 3300, Montréal, QC, H3B 3X7 www.championiron.com
Slide 47: Notes on Historical Estimates Used in the Presentation
APPENDIX 1 CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF > NOTES ON HISTORICAL ESTIMATES USED IN THE PRESENTATION SST" ThehistoricalMoiré Lake resource estimates are basedon the NI 43-101 technical reporttitled “Technical Report and Mineral Resource Estimate on the Moire Lake Property” by PGE M
Slide 48: Champion Iron Limited Mineral Resources and Mineral Reserves
APPENDIX 2 CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF CHAMPION IRON LIMITED MINERAL RESOURCES AND MINERAL RESERVES CHAMPION IRON LIMITED - MINERAL RE SOURCES (MILLION DRY METRIC TONNES) PROPERTY GROUP PROVEN Fe% CHAMPION IRON LIMITED - MINERAL RESERVES (MILLION DRY METRIC TONNES) PROBABLE =
Slide 49: Notes on Mineral Resources and Reserves for the Bloom Lake Mine
APPENDIX 3 CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF > NOTES ON MINERAL RESOURCES AND MINERAL RESERVES FOR THE BLOOM LAKE MINE Leavin resources are not mineral reserves and have not demonstrated economic viability under the assumptions contained in the 2023 Technical Report. All figures ha
Slide 50: Notes on Mineral Resources and Reserves for the Kami Project
CHAMPION IRON 29 APPE N D IX 4 TSX: CIA | ASX: CIA | OTCQX: CIAFF > NOTES ON MINERAL RESOURCES AND MINERAL RESERVES FOR THE KAMI PROJECT cx Mineral Resource estimate described above has been prepared in accordance with the CIM Standards (Canadian institute of Mining, Metallurgy and Petroleum, 2014)
Slide 51: Appendix 5: High-Purity Iron Captures Premiums Across Green Steel Supply Chain
APPENDIX 5: MARKET DYNAMICS CHAMPION IRON 2s 4UGH-PURITY IRON OFFERS THE OPPORTUNITY TO CAPTURE PREMIUMS ACROSS THE GREEN “GTEEL SUPPLY CHAIN STEEL VALUE CHAIN AVERAGE PRICES (2021 - 2023)! 2 (US$/T CFR CHINA) | $45 $512 $213 $19 $152 E $27 $19 || 62% Iron Ore Total 65% Iron Ore Total DR Pellet DRI/
Slide 52: All eyes on DRI
For personal use only All eyes on DRI Cicero Machado, Senior Manager of Bulks Assets September 2024
Slide 53: EAF preference to rise as emission containment measures kick in
EAF preference to rise as emission containment measures kick in For personal use only Decarbonisation initiatives to elevate EAF output Region-wise share of steelmaking routes China EU+UK USA CAGR → 3.4% -0.7% 0.6% 2022-2033 million tonnes JKT India Southeast Asia % production share 2022 2033 2022 E
Slide 54: Hot metal to be negatively impacted due to rising EAF preference
Hot metal to be negatively impacted due to rising EAF preference For personal use only Scrap and DRI rapidly becoming the most sought after metallic due to its low-carbon footprint Metallics demand (MT) Trend 11yr CAGR Share in metallics 2022 2033 2022 2033 Hot metal -0.5% Scrap 2.3% 2.9% DRI Hot me
Slide 55: Key green DRI projects announced
Key green DRI projects announced For personal use only Central/North Europe West/South Europe Germany - Wilhelmshaven (Salzgitter) France - Dunkirk (Liberty Steel / ArcelorMittal) Germany - Eisenhüttenstadt, Hamburg, Bremen (ArcelorMittal) France - Fos-sur-mer (GravitHy) Germany - Duisburg (ThyssenK
Slide 56: Middle East, China, Australia and Europe will lead incremental DRI capacity additions
Middle East, China, Australia and Europe will lead incremental DRI capacity additions by 2050 while Brazil, USA and Africa will also see some traction For personal use only Supply of green raw materials and energy is key to greening DRI; imbalance of which is expected to move iron making to location
Slide 57: Asia Pacific and the Middle East will account for most of global DRI production by 2050
Asia Pacific and the Middle East will account for most of global DRI production by 2050 For personal use only DRI production growth will be faster in Europe as it adds green DRI to its supply mix amid decarbonization wave Regional DRI production pace versus share of EAF by 2050 (%) Size of the bubbl
Slide 58: Just a small share of current production is prime grade for green steel
Just a small share of current production is prime grade for green steel For personal use only Market analysis by Fe grade and impurities Analysis for key miners Atlas Iron FMG Rio Tinto Unsuitable for Moderately rich Prime grade BHP DR pellet Alumina & Silica Unsuitable grade Gerdau CITIC Mineral Re
Slide 59: Quality differentials to widen because of increasing preference for high-grade ore
Quality differentials to widen because of increasing preference for high-grade ore For personal use only Fe differential premium to be consistently elevated in the long term Iron ore price forecast (65-62% and 58-62% Fe) Key determinants for price forecasts US$/t (Nominal) LT Real 65%-62% Fe 58%-62%
Slide 60: Wood Mackenzie contact details
For personal use only Europe +44 131 243 4477 Americas +1 713 470 1700 Asia Pacific +65 6518 0888 Email contactus@woodmac.com Website www.woodmac.com Wood Mackenzie is a trusted intelligence provider, empowering decision-makers with unique insight on the world’s natural resources. We are a leading r